Real Estate Investor Magazine South Africa May/June 2019 | Page 19

RETAIL
then delivered to the customer, or back to the store for
collection.
How do you ensure your competitiveness and market
dominance in the online retail sector, when the economy
is down and buyers strapped for cash?
ANSWER: Online retail makes it very easy for customers
to shop around and find the cheapest price on any
product. This can be a slippery slope for retailers,
particularly in a tough economic season. We have tried
to find affordable products in as many categories as
possible, but we also differentiate on aspects other than
price, such as the uniqueness of our range and the service
we provide.
What new technology (in the online shopping space) are
you particularly excited about?
ANSWER: I am excited when friction is taken away from
the shopping experience, particularly during checkout.
Paying online with credit cards has been difficult and
scary for customers, so mobile payment offerings like
Snapscan and Zapper are helping to make checkout
much more seamless.
What do you think shopping centre landlords need to do
to avoid low sales and eventually vacancies?
ANSWER: Landlords and tenants need to get together
more often in order to strategise on how to create a
better shopping experience for customers. We have
found that there is intense discussion during the lease
negotiation, and then silence for the years that follow!
We all stand to benefit if we work together, and not to
squeeze each other for short-term gain.
YUPPIECHEF CO-FOUNDER ANDREW SMITH
you explain why?
ANSWER: When you open an ecommerce store in 2006,
with 32 kitchen products, in South Africa, and with no
money for marketing, the only person who visits the
site is your mom. Our primary marketing strategy was
providing great products and remarkable service (like a
hand-written card and free delivery with every order), but
word-of-mouth only works when enough people have
had their first experience. We grew quickly, but it was off
of a tiny base.
Turnover is higher, but rentals are astronomical: are you
planning on opening many stores across the country or is
the idea that they act more like showrooms for the online
offering?
ANSWER: Rent is high in good retail locations, but so is
delivering an online order to Kuruman. We have found
the total costs of physical versus online retail to be similar.
Our stores are not showrooms, but they do only contain
about 10% of our full range due to space limitations.
We make a lot of sales - in stores - of products that are
Which type of your items do well online and in the
physical stores, respectively?
ANSWER: A lot of our popular products do well in both
channels, but broadly speaking, appliances do better
online because customers know what they’re looking
for, and giftable products do well in stores because
customers like to be inspired by what they see in person.
Where is your biggest market located, CT or Gauteng?
ANSWER: Gauteng is our biggest market, but Cape Town
has always punched above its weight, particularly online.
We have always felt that there is less of a mall culture
in Cape Town, and so shopping online was embraced
quicker.
Do you do your shopping online?
ANSWER: Whenever possible, but in many categories the
experience is still poor in South Africa.
Why do you think South Africans love malls so much?
ANSWER: Malls are a (generally) safe place to take the
family, meet friends, be entertained, eat out, as well as
shop. We mustn’t think that shopping online will replace
all the reasons that South Africans go to malls.
SA Real Estate Investor Magazine MAY/JUNE 2019
17